Eurozone manufacturing output falls to nine-month low in September

LONDON (ICIS)–Manufacturing output in the eurozone fell at its steepest rate this year in September to hit a nine-month low.

Key measures of factory strength such as production, new orders, employment and procurement activity all declined at quicker rates, according to purchasing managers’ index (PMI) data on Tuesday.

The HCOB (Hamburg Commercial Bank) eurozone manufacturing PMI fell to 45.0 in September from 45.8 in August, while manufacturing output declined to 44.9, also from 45.8 in the previous month.

Both were at a nine-month low, said S&P Global which compiles the indexes. A figure above 50 indicates growth, and below 50 contraction.

“Lower output volumes were a response to the prevailing demand environment, which deteriorated further during September,” the market intelligence group said in a statement.

Growth in Spain and Greece was offset by weakness elsewhere, particularly in the eurozone’s largest manufacturing sector Germany, which recorded its most pronounced worsening of factory conditions for 12 months.

Countries ranked by PMI: September

Spain	53.0	4-month high
Greece	50.3	12-month low
Ireland	49.4	3-month low
Italy	48.3	2-month low
Netherlands	48.2	2-month high
France	44.6	3-month high
Austria	42.8	6-month low
Germany	40.6	12-month low

“While handling the global manufacturing downturn surprisingly well, Spain just does not have enough weight to lift the rest of the eurozone with it,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.

“The worsening industrial slump in Germany, for example, is too big for Spain’s momentum in September to make much of a difference.”

In the UK, the picture was brighter as solid expansion in the sector continued in September.

Although the manufacturing PMI declined to 51.5 from August’s 26-month high of 52.5, it has remained above 50 for five successive months.

The main drivers of September expansion were the consumer and intermediate goods sectors, both of which recorded stronger increases in output and new business.